Micron Technology, Inc. designs, develops, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit. It provides memory and storage technologies comprising dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval; non-volatile and re-writeable semiconductor storage devices; and non-volatile re-writable semiconductor memory devices that provide fast read speeds under the Micron and Crucial brands, as well as through private labels. The company offers memory products for the cloud server, enterprise, client, graphics, networking, industrial, and automotive markets, as well as for smartphone and other mobile-device markets; SSDs and component-level solutions for the enterprise and cloud, client, and consumer storage markets; discrete storage products in component and wafers; and memory and storage products for the automotive, industrial, and consumer markets. It markets its products through its direct sales force, independent sales representatives, distributors, and retailers; and web-based customer direct sales channel, as well as through channel and distribution partners. Micron Technology, Inc. was founded in 1978 and is headquartered in Boise, Idaho.

Micron Technology, Inc.

For Immediate Release
Chicago, IL – January 29, 2026 – Stocks in this week’s article are Micron Technology, Inc. MU and NVIDIA Corp. NVDA.
Up 30%+ in 2025, 2 Profitable Semiconductor Stocks to Buy in 2026
Now that 2026 is underway, investors should focus on companies that generate solid returns after covering all operating and non-operating expenses. As a result, profitable businesses tend to be more attractive than the money-losing ones. To assess profitability, investors should rely on accounting ratios that focus on the most widely used measure of a company’s bottom-line performance.
With that in mind, two semiconductor stocks emerged as the top profitable picks, backed by robust net income ratios and significant upside potential. Incidentally, they are Micron Technology, Inc. and NVIDIA Corp., whose shares have soared 239.1% and 38.8%, respectively, last year.
Net Income Ratio Explained
The net income ratio indicates a company's exact profitability level. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
These few parameters have narrowed the universe of more than 7,685 stocks to only seven.
Here are two of the seven stocks that qualified for the screening:
Micron Technology
Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 28.2% (read more: Micron at 11.7 P/E: One of 2026's Best Buying Opportunities).
NVIDIA
NVIDIA is a global computing infrastructure company offering graphics, compute and networking solutions. The 12-month net profit margin of NVDA is 53% (read more: Micron vs. NVIDIA: One AI Chip Stock is Poised to Win Big in 2026).
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Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
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Zacks.com featured highlights include Micron and NVIDIA

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -0.01%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.32%. March E-mini S&P futures (ESH26) fell -0.01%, and March E-mini Nasdaq futures (NQH26) rose +0.32%.
Stock indexes settled mixed on Wednesday, with the S&P 500 falling from a new all-time high and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks led the broader market higher on Wednesday after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, better-than-expected earnings results from Seagate Technology Holdings NV and Texas Instruments added to the bullish market sentiment.
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Stocks fell from their best levels and turned mixed on Wednesday after the FOMC, as expected, kept interest rates unchanged and Fed Chair Powell refrained from signaling any imminent rate cuts amid a solid economy.
The dollar index (DXY00) finished higher on Wednesday, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments pushed gold prices (GCG26) up more than +3% on Wednesday to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
As expected, the FOMC voted 10-2 to keep the fed funds target range unchanged at 3.50%-3.75%. The post-FOMC statement said economic activity has been expanding at a solid pace and inflation remains somewhat elevated. The FOMC also said, "job gains have remained low, and the unemployment rate has shown some signs of stabilization," and dropped language from the prior meeting that said downside risks to employment have increased.
Fed Chair Powell said the Fed is well-positioned and can afford to wait for incoming data before making its next move on interest rates. He added that the economy has once again surprised us with its strength, and there's been a disconnect between surveys and spending.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is the risk of another partial government shutdown. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 106 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.6% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 13% chance for a -25 bp rate cut at the next policy meeting on March 17-18.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 fell from a 1.5-week high and closed down by -1.02%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) on Wednesday closed down by -5 ticks. The 10-year T-note yield rose +1.4 bp to 4.247%. Wednesday’s rally in WTI crude oil to a 4-month high boosted inflation expectations and undercut T-note prices. T-notes maintained their losses after the FOMC kept interest rates unchanged and said economic activity has been expanding at a solid pace, and inflation remains somewhat elevated.
European government bond yields were mixed on Wednesday. The 10-year German bund yield fell -1.7 bp to 2.857%. The 10-year UK gilt yield rose to a 5-week high of 4.547% and finished up by +1.9 bp at 4.544%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks rallied on Wednesday after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) closed up more than +19% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC) and Western Digital (WDC) closed up more than +10%, and Texas Instruments (TXN) and Sandisk (SNDK) closed up more than +9%. In addition, Microchip Technology (MCHP) and Micron Technology (MU) closed up more than +6%, and NXP Semiconductors NV (NXPI) and Analog Devices (ADI) closed up more than +4%.
F5 Inc. (FFIV) closed up more than +8% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Elevance Health (ELV) closed up more than +5% after it said it will allocate $2.3 billion to share repurchases this year.
MSCI Inc. (MSCI) closed up more than +5% after reporting Q4 total recurring subscriptions of $2.45 billion, better than the consensus of $2.44 billion.
AT&T (T) closed up more than +4% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
Newmont (NEM) closed up more than +3% to lead gold mining stocks higher after gold prices jumped more than +3% to a new all-time high.
PPG Industries (PPG) closed up more than +3% after reporting Q4 net sales of $3.91 billion, above the consensus of $3.78 billion.
GE Vernova (GEV) closed up more than +2% after reporting Q4 revenue of $10.96 billion, above the consensus of $10.27 billion.
Carvana (CVNA) closed down more than -14% to lead losers in the S&P 500 after short seller Gotham City Research said the company overstated earnings with the help of close ties to businesses controlled by the family of CEO Garcia.
Amphenol (APH) closed down more than -12% after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) closed down more than -7% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) closed down more than -6% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Danaher (DHR) closed down more than -4% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46.
Otis Worldwide (OTIS) closed down more than -2% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
PayPal Holdings (PYPL) closed down more than -2% after Rothschild & Co Redburn downgraded the stock to sell from neutral with a price target of $50.
Earnings Reports(1/29/2026)
A O Smith Corp (AOS), Altria Group Inc (MO), Ameriprise Financial Inc (AMP), Apple Inc (AAPL), Arthur J Gallagher & Co (AJG), Blackstone Inc (BX), Caterpillar Inc (CAT), Comcast Corp (CMCSA), Deckers Outdoor Corp (DECK), Dover Corp (DOV), Dow Inc (DOW), Hartford Insurance Group Inc/The (HIG), Hologic Inc (HOLX), Honeywell International Inc (HON), International Paper Co (IP), KLA Corp (KLAC), L3Harris Technologies Inc (LHX), Lockheed Martin Corp (LMT), Marsh & McLennan Cos Inc (MRSH), Mastercard Inc (MA), Nasdaq Inc (NDAQ), Norfolk Southern Corp (NSC), Parker-Hannifin Corp (PH), PulteGroup Inc (PHM), ResMed Inc (RMD), Royal Caribbean Cruises Ltd (RCL), Sandisk Corp/DE (SNDK), Sherwin-Williams Co/The (SHW), Southwest Airlines Co (LUV), Stryker Corp (SYK), Thermo Fisher Scientific Inc (TMO), Tractor Supply Co (TSCO), Trane Technologies PLC (TT), Valero Energy Corp (VLO), Visa Inc (V), Western Digital Corp (WDC), Weyerhaeuser Co (WY).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Finish Mixed as Fed Keeps Interest Rates Steady

The S&P 500 Index ($SPX) (SPY) today is down -0.06%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.11%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.19%.
Stock indexes are mixed today, after the S&P 500 posting a new all-time high earlier in the day and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks is buoying market today after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, Seagate Technology Holdings NV and Texas Instruments reported better-than-expected earnings results from.
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However, stocks fell back from their best levels after the Federal Reserve announced it would halt its series of interest rate reductions, choosing to keep the benchmark rate steady between 3.5% and 3.75%. This decision met broad market expectations and ended a period of three consecutive quarter-point cuts that were designed to protect the labor market from potential weakness.
The dollar index (DXY00) is moving higher today, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments have pushed gold prices (GCG26) up more than +3% today to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at today’s meeting, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. Later today, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-FOMC-meeting comments from Fed Chair Powell will also be scrutinized for clues about the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell from a 1.5-week high and is down by -0.83%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -4 ticks. The 10-year T-note yield is up +2.2 bp to 4.255%. Today’s rally in the S&P 500 to a new record high is curbing safe-haven demand for T-notes. Also, long liquidation and position squaring are weighing on T-notes ahead of the FOMC decision later today.
European government bond yields are mixed today. The 10-year German bund yield is down -1.3 bp to 2.862%. The 10-year UK gilt yield rose to a 5-week high of 4.546% and is up by +1.9 bp at 4.544%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are rallying today after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) is up more than +17% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC), Western Digital (WDC), and Texas Instruments (TXN) are up more than +8%. In addition, Microchip Technology (MCHP) is up more than +6%, and Sandisk (SNDK) and Micron Technology (MU) are up more than +5%. Finally, NXP Semiconductors NV (NXPI) and ON Semiconductor Corp (ON) are up more than +4%, and Analog Devices (ADI) is up more than +3%.
F5 Inc. (FFIV) is up more than +7% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Elevance Health (ELV) is up more than +5% after it said it will allocate $2.3 billion to share repurchases this year.
AT&T (T) is up more than +3% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
PPG Industries (PPG) is up more than +3% after reporting Q4 net sales of $3.91 billion, above the consensus of $3.78 billion.
MSCI Inc. (MSCI) is up more than +2% after reporting Q4 total recurring subscriptions of $2.45 billion, better than the consensus of $2.44 billion.
Starbucks (SBUX) is up more than +2% after reporting Q1 US comparable same-store sales rose +4%, stronger than the consensus of +1.88%, and forecasting full-year comparable sales of at least +3%, above the consensus of +2.83%.
Amphenol (APH) is down more than -13% to lead losers in the S&P 500 after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) is down more than -9% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) is down more than -5% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Otis Worldwide (OTIS) is down more than -3% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
Danaher (DHR) is down more than -2% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46.
PayPal Holdings (PYPL) is down more than -1% after Rothschild & Co Redburn downgraded the stock to sell from neutral with a price target of $50.
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Mixed After the Fed Pauses Rate Cuts

Now that 2026 is underway, investors should focus on companies that generate solid returns after covering all operating and non-operating expenses. As a result, profitable businesses tend to be more attractive than the money-losing ones. To assess profitability, investors should rely on accounting ratios that focus on the most widely used measure of a company’s bottom-line performance.
With that in mind, two semiconductor stocks emerged as the top profitable picks, backed by robust net income ratios and significant upside potential. Incidentally, they are Micron Technology, Inc. MU and NVIDIA Corporation NVDA, whose shares have soared 239.1% and 38.8%, respectively, last year.
Net Income Ratio Explained
The net income ratio indicates a company's exact profitability level. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
Screening Parameters Using Research Wizard:
The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Zacks Rank Equal to #1: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only seven.
Here are two of the seven stocks that qualified for the screening:
Micron Technology
Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 28.2% (read more: Micron at 11.7 P/E: One of 2026's Best Buying Opportunities).
NVIDIA
NVIDIA is a global computing infrastructure company offering graphics, compute and networking solutions. The 12-month net profit margin of NVDA is 53% (read more: Micron vs. NVIDIA: One AI Chip Stock is Poised to Win Big in 2026).
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Up 30%+ in 2025 - 2 Profitable Semiconductor Stocks to Buy in 2026

The S&P 500 Index ($SPX) (SPY) today is up +0.03%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.02%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.43%. March E-mini S&P futures (ESH26) are up +0.02%, and March E-mini Nasdaq futures (NQH26) are up +0.38%.
Stock indexes are moving higher today, with the S&P 500 posting a new all-time high and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks is leading the overall market higher today after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, better-than-expected earnings results from Seagate Technology Holdings NV and Texas Instruments added to the bullish market sentiment.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
However, stocks fell back from their best levels amid long liquidation and position squaring ahead of today’s FOMC meeting results and remarks from Fed Chair Powell. The markets are expecting the FOMC to keep the fed funds target range unchanged at 3.50% to 3.75%.
The dollar index (DXY00) is moving higher today, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments have pushed gold prices (GCG26) up more than +3% today to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at today’s meeting, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. Later today, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-FOMC-meeting comments from Fed Chair Powell will also be scrutinized for clues about the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell from a 1.5-week high and is down by -0.83%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -4 ticks. The 10-year T-note yield is up +2.2 bp to 4.255%. Today’s rally in the S&P 500 to a new record high is curbing safe-haven demand for T-notes. Also, long liquidation and position squaring are weighing on T-notes ahead of the FOMC decision later today.
European government bond yields are mixed today. The 10-year German bund yield is down -1.3 bp to 2.862%. The 10-year UK gilt yield rose to a 5-week high of 4.546% and is up by +1.9 bp at 4.544%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are rallying today after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) is up more than +17% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC), Western Digital (WDC), and Texas Instruments (TXN) are up more than +8%. In addition, Microchip Technology (MCHP) is up more than +6%, and Sandisk (SNDK) and Micron Technology (MU) are up more than +5%. Finally, NXP Semiconductors NV (NXPI) and ON Semiconductor Corp (ON) are up more than +4%, and Analog Devices (ADI) is up more than +3%.
F5 Inc. (FFIV) is up more than +7% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Elevance Health (ELV) is up more than +5% after it said it will allocate $2.3 billion to share repurchases this year.
AT&T (T) is up more than +3% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
PPG Industries (PPG) is up more than +3% after reporting Q4 net sales of $3.91 billion, above the consensus of $3.78 billion.
MSCI Inc. (MSCI) is up more than +2% after reporting Q4 total recurring subscriptions of $2.45 billion, better than the consensus of $2.44 billion.
Starbucks (SBUX) is up more than +2% after reporting Q1 US comparable same-store sales rose +4%, stronger than the consensus of +1.88%, and forecasting full-year comparable sales of at least +3%, above the consensus of +2.83%.
Amphenol (APH) is down more than -13% to lead losers in the S&P 500 after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) is down more than -9% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) is down more than -5% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Otis Worldwide (OTIS) is down more than -3% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
Danaher (DHR) is down more than -2% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46.
PayPal Holdings (PYPL) is down more than -1% after Rothschild & Co Redburn downgraded the stock to sell from neutral with a price target of $50.
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Supported by Solid Tech Earnings

Key Points
Memory storage is a critical part of AI infrastructure, and Micron is one of the top beneficiaries.
Micron's strong Q1 FY26 results show substantial, durable growth.
The company's low valuation compared to other AI stocks makes it a bargain.
The artificial intelligence (AI) hype is warranted, but between giants like Nvidia and rising stars like Iren, many promising stocks can slip under investors' radars.
Micron Technology (NASDAQ: MU) is one of those companies. It's far from small, with a $437 billion market cap, but its recent quarterly results, strong outlook, and bargain-basement valuation make it compelling. It's silently crushed the stock market over the past year, and is already starting 2026 strong with a 36% year-to-date gain. Even with those successes, Micron is an underrated AI stock that hasn't received as much hype as companies with similar stock gains.
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More people are paying attention to energy storage
AI chips and energy have received plenty of attention as two components of the AI bottleneck. However, memory storage is just as important, since it enables chips to perform at their best. Micron provides memory solutions for Nvidia, Advanced Micro Devices, and other AI chipmakers.
Each time a tech giant buys a chip, Micron makes a little extra revenue. For Micron, it doesn't matter if Nvidia, Advanced Micro Devices, Broadcom, or another chipmaker comes out on top. Micron benefits each time any of these chips is sold. Even for other AI chipmakers that Micron doesn't serve directly, higher AI chip sales will boost demand for memory storage solutions.
Micron's financial results paint the full picture. Revenue increased by 57% year over year in first-quarter fiscal year 2026, with net income almost tripling.
It's hard to find an AI stock with Micron's valuation
Micron's high revenue growth and rising profit margins are a good combination that can support long-term gains. The company has also established itself as a leader in the memory storage industry. However, its valuation makes the stock look like one of the best in the entire market.
Micron trades at an 11.5 forward price-to-earnings (P/E) ratio. Meanwhile, Nvidia, Advanced Micro Devices, and Broadcom have forward P/E ratios of 23, 37, and 33, respectively. If Micron had a valuation that more closely resembled these three AI chipmakers', it would already be worth more than $1 trillion.
This revenue surge isn't a one-time thing. Micron increased revenue by 49% year over year in fiscal 2025, and the company provided exceptional guidance for the second quarter of 2026. Micron is an AI enabler that is a critical part of the bottleneck. Despite posting strong gains, it hasn't received as much spotlight as the trillion-dollar AI stocks and the rising stars. Micron's valuation offers an attractive margin of safety while giving investors exposure to the hottest industry.
Should you buy stock in Micron Technology right now?
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Marc Guberti has positions in Broadcom and Iren. The Motley Fool has positions in and recommends Advanced Micro Devices, Micron Technology, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Forget the Hype: This Stock Could Offer Better Long-Term Returns

The S&P 500 Index ($SPX) (SPY) today is up +0.28%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.04%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.81%. March E-mini S&P futures (ESH26) are up +0.25%, and March E-mini Nasdaq futures (NQH26) are up +0.79%.
Stock indexes are moving higher today, with the S&P 500 posting a new all-time high and the Nasdaq 100 posting a 3-month high. Strength in chipmakers and AI infrastructure stocks is leading the overall market higher today after a sharp increase in orders at ASML Holding NV added fresh optimism to the sustainability of artificial intelligence spending. ASML Holding NV, the only producer of lithography machines that are needed to make advanced semiconductors, reported today that Q4 bookings were a record 13.2 billion euros, well above the consensus of 6.85 billion euros. Also, better-than-expected earnings results from Seagate Technology Holdings NV and Texas Instruments added to the bullish market sentiment.
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The dollar index (DXY00) is slightly higher today, recovering some of Tuesday’s plunge to a nearly 4-year low. The dollar sank on Tuesday after President Trump said that he's comfortable with the recent weakness in the dollar. Meanwhile, Mr. Trump’s comments have pushed gold prices (GCG26) up more than +3% today to a new all-time high.
WTI crude oil (CLH26) climbed to a 4-month high today after President Trump said in a social media post that he wants Iran to come to the table and negotiate a “fair and equitable deal with No Nuclear Weapons.” He warned Iran that time is running out to make a deal with the US, noting that a fleet of US warships entering the region is ready to complete their mission “with speed and violence.”
US MBA mortgage applications fell -8.5% in the week ended January 23, with the purchase mortgage sub-index down -0.4% and the refinancing mortgage sub-index down 15.7%. The average 30-year fixed rate mortgage rose +8 bp to 6.24% from 6.16% in the prior week.
Threats to stocks and the dollar remain. President Trump has threatened new 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, and lingering concerns about Greenland. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at today’s meeting, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. Later today, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-meeting comments from Fed Chair Powell on Wednesday will also be scrutinized for clues about the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after today’s close, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at the conclusion of today’s FOMC meeting.
Overseas stock markets are mixed today. The Euro Stoxx 50 fell from a 1.5-week high and is down -0.52%. China’s Shanghai Composite rose to a 2-week high and closed up +0.27%. Japan’s Nikkei Stock 225 closed up +0.05%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -2 ticks. The 10-year T-note yield is up +1.2 bp to 4.245%. Today’s rally in the S&P 500 to a new record high is curbing safe-haven demand for T-notes. Also, long liquidation and position squaring are weighing on T-notes ahead of the FOMC decision later today.
European government bond yields are mixed today. The 10-year German bund yield is down -2.5 bp to 2.849%. The 10-year UK gilt yield rose to a 5-week high of 4.540% and is up by +0.4 bp at 4.529%.
The German Feb GfK consumer confidence index rose by +2.8 to -24.1, stronger than expectations of -25.5.
Austrian central bank governor Kocher said the ECB would need to consider another interest rate cut if further increases in the euro's value were large enough to lower inflation projections.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are rallying today after positive earnings results from ASML Holding NV, Seagate Technology Holdings Plc, and Texas Instruments, signaling continued strong AI spending. Seagate Technology Holdings Plc (STX) is up more than +17% to lead gainers in the S&P 500 and the Nasdaq 100. Also, Intel (INTC) and Sandisk (SNDK) are up more than +8%, and Western Digital (WDC), Microchip Technology (MCHP), and Texas Instruments (TXN) are up more than +6%. In addition, Micron Technology (MU) and NXP Semiconductors NV (NXPI) are up more than +3%, and Analog Devices (ADI) and Marvell Technology (MRVL) are up more than +2%.
F5 Inc. (FFIV) is up more than +8% after reporting Q4 net revenue of $822.5 million, well above the consensus of $758.8 million, and raised its full-year revenue forecast to +5% to +6% from a previous estimate of 0% to +4%.
Starbucks (SBUX) is up more than +4% after reporting Q1 US comparable same-store sales rose +4%, stronger than the consensus of +1.88%, and forecasting full-year comparable sales of at least +3%, above the consensus of +2.83%.
Brinker International (EAT) is up more than +3% after reporting Q2 adjusted EPS of $2.87, stronger than the consensus of $2.62.
AT&T (T) is up more than +2% after reporting Q4 revenue of $33.5 billion, stronger than the consensus of $32.83 billion.
GE Vernova (GEV) is up more than +2% after raising its 2026 revenue forecast to $44 billion-$45 billion from a previous forecast of $41 billion-$42 billion.
Corning (GLW) is up more than +2% after reporting Q4 core sales of $4.41 billion, greater than the consensus of $4.36 billion.
Amphenol (APH) is down more than -13% to lead losers in the S&P 500 after Bloomberg Intelligence said the company’s sales forecast “underwhelms,” and after a robust Q4 beat, which suggests potential demand pull-forward.
Textron (TXT) is down more than -7% after forecasting 2026 adjusted EPS of $6.40 to $6.60, below the consensus of $6.86.
Qorvo (QRVO) is down more than -6% after forecasting Q4 adjusted EPS of $1.05 to $1.35, weaker than the consensus of $1.37.
Otis Worldwide (OTIS) is down more than -5% after reporting Q4 net sales of $3.80 billion, below the consensus of $3.87 billion.
Danaher (DHR) is down more than -1% after forecasting full-year adjusted EPS of $8.35 to $8.50, the midpoint below the consensus of $8.46
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rally on AI Spending Optimism

For Immediate Release
Chicago, IL – January 28, 2026 – Zacks Equity Research shares Lam Research LRCX, as the Bull of the Day and Generac Holdings GNRC as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Micron Technology, Inc.’s MU and NVIDIA Corp. NVDA.
Here is a synopsis of all three stocks:
Lam Research became a Zacks #1 Rank again ahead of its earnings report Wednesday afternoon.
As with many semiconductor companies, from chip designers like NVIDIA and Advanced Micro Devices to the foundries like Taiwan Semi and Intel, the bull case for wafer fabrication equipment (WFE) companies like Lam Research has shifted from a cyclical recovery to a structural "content gain" play.
And it didn't hurt that two weeks ago TSMC revealed expanded capex plans for their "fabs" in Arizona and Taiwan and Micron broke ground on a $100 billion leading-edge memory manufacturing complex in Onondaga County, New York, which will include up to four fabs capable of producing advanced memory to support the rising demand for artificial intelligence systems and devices.
Since then, there have been a flurry of investment bank analyst actions, including raising EPS estimates and price targets...
It looks like most of these analysts were stuck in their Sep quarter narratives -- before the Micron and Sandisk DRAM and NAND flash memory/storage explosion -- with average targets below $200!
BofA to $245
Stifel to $250
Wells to $250
Needham to $250
UBS to $255
Deutsche to $260
RBC initiates with $260
Citi to $265
The 2026 "Etch Intensity" Supercycle
While the lithography laser light show of ASML often grabs the WFE headlines, the transition to Gate-All-Around (GAA) transistors and HBM4 (High Bandwidth Memory) is where Lam’s etch and deposition dominance becomes the primary bottleneck solver.
Lam Research’s Systems segment revenues are likely to have registered strong growth in their Q2 of FY'26 (ends June), mainly driven by the strength of its foundry business which continues to benefit from rising investments in advanced chip manufacturing, especially for AI and HPC applications.
The company’s strong position in etch and deposition tools, which are critical for smaller and more complex transistor designs, has made it a key supplier to major foundries.
Lam’s new technologies, such as the Aether dry resist extreme ultraviolet (EUV) patterning solution and the Akara conductor etch system, have been gaining traction with leading-edge chipmakers as well. These advanced technologies improve pattern precision and process efficiency, which is essential for the ongoing transition to next-generation nodes like gate-all-around transistors.
We believe that the company’s sustained focus on expanding technological leadership, along with the rising demand for AI and advanced computing chips, has strengthened its foundry business. This is likely to have boosted Lam Research’s Systems revenues in Q2.
The Zacks model estimates second-quarter Systems’ revenues to be $3.41 billion, indicating a year-over-year increase of 29.7%.
3 Strategic Pillars for LRCX
1. The GAA Inflection (TSMC 2nm/A14): TSMC is aggressively scaling 2nm capacity at Fabs 20 and 22, targeting over 140,000 wafers per month by year-end. GAA architectures are roughly 20% more etch-intensive than FinFET. Lam’s selective etch and ALD (Atomic Layer Deposition) tools are mission-critical for the complex "nanosheet" releases required at these nodes.
2. The HBM4 War (Micron vs Samsung): The memory market is entering a "Supercycle" driven by AI. Samsung and Micron are racing to 16-layer HBM4 stacks. This vertical scaling relies on High-Aspect-Ratio (HAR) etching for Through-Silicon Vias (TSVs) -- a segment where Lam maintains a dominant market share. As stacks get taller, the margin for error shrinks, favoring Lam’s Cryo 3.0 etching technology.
3. Financial Fortress: With global WFE spending tracking toward a record $150 billion, Lam is capturing high-margin growth. Their Customer Support Business Group (CSBG) provides a resilient recurring revenue floor (~30% of total revenue), ensuring stability even as capital expenditure cycles fluctuate.
Bottom Line: Lam is the "digital blacksmith" of the AI era. With 2nm ramping and memory going vertical, Lam’s content-per-wafer is at an all-time high. Trading at a forward P/E of 40x and 11x sales -- vs ASML at 44x and 13x -- it appears analysts are still cautious assigning software growth multiples to the chip sector. That means they still underappreciate the margin expansion coming from the shift to the Angstrom era (sub-2nm) that will impact the entire hardware ecosystem.
By the way, one analyst who didn't miss the ride since the Sep quarter was our own Dave Bartosiak who runs the Zacks Surprise Trader portfolio. He bought LRCX shares on October 14 at $139 and was enjoying a 60%+ gain with shares above $223 this week. I expect that ride to continue higher after Wednesday's Dec quarter report.
Kevin Cook is a Senior Stock Strategist at Zacks where he runs the TAZR Trader portfolio and owns NVDA and TSM shares.
Generac Holdings is a leading manufacturer of power generation equipment, including standby generators, energy storage, and related products, serving residential, commercial, industrial, and portable needs. The company focuses on backup power solutions amid rising demand from outages, data centers, and electrification trends.
Revenue Segments
Generac's 2024 revenue reached $4.3 billion, with Residential products at 56-57% ($2.4 billion), Commercial & Industrial (C&I) at 32% ($1.4 billion), and Other products/services at 11%. Domestic sales dominate at 84%, with international at 16%. TTM revenue through mid-2025 stands at $4.41 billion.
The problem is that fiscal year 2025 revenues are looking like they are going to come in flat near $4.3 billion too.
Growth Rates
Revenue grew 6.8% in 2024 after an 11.9% decline in 2023, with TTM growth at 9.7%. Residential averaged 9.5% YoY growth over two years, while C&I saw 2.2% declines; Q3 2025 sales fell 5% to $1.11 billion. Analysts project 7.7% revenue growth over the next year and flat 2025 sales amid weak outages, with EPS up 15.8% to $7.54. Long-term CAGR is 14% since 2000.
Profits are a problem too with the Zacks consensus for 2025 projected at EPS of $6.61, representing a 9% annual drop.
Q3 Report Displays the Weakness
Generac reported third-quarter 2025 adjusted earnings per share (EPS) of $1.83, which missed the Zacks Consensus Estimate of $2.25 by 18%. GNRC reported adjusted EPS of $2.25 in the prior-year quarter.
Net sales were $1.11 billion, down 5% compared with $1.17 billion reported in the prior-year quarter. The figure also missed the consensus estimate of $1.2 billion.
Weaker seasonal demand for home standby and portable generators offset increases in sales for global C&I products and higher shipments of residential energy technology products. Although home standby and portable generator shipments were up sequentially in the quarter, they came in below expectations due to a power outage environment that was considerably below the baseline average, as highlighted by GNRC.
As a result of a weak power outage environment, management has revised its expectations for 2025. For 2025, GNRC now expects revenues to be flat compared with an increase of 2-5% guided earlier.
Net income margin (before deducting for non-controlling interests) is now expected to be 6% compared with 7.5-8.5% guided earlier. Adjusted EBITDA margin is now estimated to be 17% compared with the previous range of 18% to 19%. GNRC now expects free cash flow conversion from adjusted net income to be 80% compared with the previous guided range of 90% to 100%.
Demand and Backlog
Management describes data center power as a “generational opportunity,” with the potential to double C&I sales over the next three to five years as hyperscale and AI-driven capacity build out.
The order backlog for large megawatt generators has roughly doubled in recent quarters, explicitly tied to data center projects, and is now a key component of forward C&I visibility.
Customers, Partners, and Competition
Key customers include residential homeowners, C&I clients like data centers (e.g., C7 Data Centers), and industrial users. Generac supplies high-capacity generators (2.25-3.25 MW) for data centers and partners with Wallbox for EV charging integration.
This month, Generac acquired a Sussex, WI manufacturing site to expand C&I production alongside their Beaver Dam and Oshkosh facilities. This long-term focus on growth is a key factor for investors to focus on during the short-term slump.
But there is new competition on the block.
Bloom Energy leads in solid oxide fuel cells (SOFCs) for stationary on-site power, targeting data centers with efficient, grid-independent generation deployable in 90 days. Bloom has customers like Oracle and partners with Brookfield Corp. to supply datacenters with fast, clean, agile energy.
Bloom also recently inked a $2.65 billion deal with American Electric Power to provide fuel cells. I originally bought Bloom Energy shares in September because they had a chance to double revenues in under two years just like Generac did from 2020-2022 to $4.5 billion. Bloom Energy is projected to grow the topline by 38% this year to cross $2.6 billion.
While Generac dominates combustion generators, Bloom's cleaner fuel cells pose indirect competition in resilient backup markets like data centers as both serve electrification but differ technologically. Generac's Q3 strength in C&I data center shipments highlights this shared space.
Kevin Cook is a Senior Stock Strategist for Zacks where he runs the TAZR Trader portfolio and holds shares of Bloom Energy.
Additional content:
Micron at 11.7 P/E: One of 2026’s Best Buying Opportunities
Micron Technology, Inc.’s shares tripled in 2025, far outpacing Wall Street favorite NVIDIA Corp. But for investors who haven’t yet jumped in, there is still a chance to invest in the company’s growth story, especially given its attractive valuation. Let’s see in detail –
Micron Gains From Surging HBM Demand
Surging demand for Micron’s high-bandwidth memory (HBM) chips has lately powered its quarterly performance. Micron’s HBM chips are increasingly valued as they are capable of handling large volumes of workloads while improving power efficiency.
Micron’s first-quarter fiscal 2026 revenues soared 56% year over year to $13.64 billion, and surpassed Wall Street’s projection of $12.88 billion, according to investors.micron.com. In particular, its cloud memory business unit reported sales of $5.28 billion, up a whopping 99.5% from the same period a year ago. Strong revenues helped Micron post a non-GAAP net income of $5.48 billion, surpassing analysts’ estimates.
The demand for Micron’s HBM chips is poised to increase further and shows no signs of easing as supply remains constrained. The expansion of AI infrastructure by hyperscalers and data center operators has increased the demand for HBM chips. Micron’s CEO, Sanjay Mehrotra, added that HBM supply constraints are expected to persist amid strong demand, creating a supply-demand imbalance that could lead to higher prices, benefiting Micron in the near future.
The total addressable marketfor HBM is expected to expand at a CAGR of around 40% from $35 billion in 2025 to nearly $100 billion by 2028, according to Micron. Against this backdrop, the company expects its financial performance to strengthen, with second-quarter fiscal 2026 revenues projected in the range of $18.3 billion to $19.1 billion, and net income also expected to increase.
Micron Offers Strong Growth at Attractive Valuation
Incessant demand for Micron’s HBM chips amid AI infrastructure growth has positioned it for further gains. The supply constraint and rapidly expanding market will surely boost Micron’s profit margins.
Interestingly, the market appears to be underestimating Micron’s growth potential. With a forward price-to-earnings (P/E) ratio of 11.76, well below the Computer-Integrated Systemsindustry’s average of 19.33, Micron presents an alluring buying opportunity without overpaying. The company’s high growth potential with healthy operating margins enhances its appeal to investors (read more: Micron vs. Palantir: Which AI Stock Is the Better Buy for 2026?).
Micron currently sports a Zacks Rank #1 (Strong Buy), and its $33.01 Zacks Consensus Estimate for earnings per share implies growth of 200.9% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Lam Research and Generac have been highlighted as Zacks Bull and Bear of the Day

Logitech International S.A. LOGI reported third-quarter fiscal 2026 non-GAAP earnings of $1.93 per share, which beat the Zacks Consensus Estimate by 7.8%. The bottom line increased 21% on a year-over-year basis.
In the third quarter of fiscal 2026, LOGI reported revenues of $1.42 billion, which surpassed the consensus mark by 0.7%. Compared with the year-ago quarter, the top line increased 6% on a reported basis and 4% on a constant currency basis.
Logitech’s Q3 Segment Details
Revenues from Keyboards & Combos rose 8% year over year to $254.6 million. Revenues from the Pointing Devices category grew 11% to $241.2 million, while Webcams decreased 3% to $82.3 million.
Our model estimates for Keyboards & Combos, Pointing Devices and Webcams categories were pegged at $249.1 million, $233.4 million and $88.7 million, respectively.
Logitech International S.A. Price, Consensus and EPS Surprise
Gaming revenues increased 3% year over year to $482.7 million, and Video Collaboration sales rose 10% to $193.3 million. Our model estimates for Gaming and Video Collaboration revenues were pegged at $484.8 million and $184.4 million, respectively.
Revenues from the Headsets product category increased 0.1% to $45.9 million, while Other categories’ sales plunged 22% to $27.9 million. Tablet Accessories sales increased 21% to $93.6 million. Our model estimates for Headsets, Tablet Accessories and Other categories were pegged at $45.8 million, $85.2 million and $27.5 million, respectively.
Logitech’s Margins & Operating Metrics
The non-GAAP gross profit increased to approximately $618.8 million from $579.1 million reported in the year-ago quarter. The non-GAAP gross margin contracted 30 basis points (bps) from the prior-year quarter to 43.5%.
Non-GAAP operating expenses decreased 2.1% year over year to approximately $306.4 million. As a percentage of revenues, non-GAAP operating expenses contracted 180 bps to 21.6%.
Non-GAAP operating income increased 17.5% to $312.4 million from $265.9 million reported in the year-ago quarter. The operating margin expanded 220 basis points to 22%.
Logitech’s Liquidity and Shareholder Return
As of Dec. 31, 2025, LOGI’s cash and cash equivalents were $1.82 billion, up from the previous quarter’s $1.38 billion. The company generated $481 million in cash from operational activities in the third quarter and $834 million in the first three quarters of fiscal 2026.
The company returned $27.1 million of cash to its shareholders through share repurchases during the third quarter. In the first three quarters of fiscal 2026, the company returned approximately $488 million through share repurchases and dividend payments.
Logitech Initiates Q4 FY26 Guidance
For the fourth quarter of fiscal 2026, Logitech projects revenues between $1.07 billion and $1.09 billion, up from the Zacks Consensus Estimate of $1.06 billion. The top-line guidance range suggests year-over-year growth of 6-8% on a reported basis and 3-5% on a constant currency basis.
For fiscal 2026, Logitech projects revenues between $4.825 billion and $4.845 billion, up from the Zacks Consensus Estimate of $4.81 billion. The top-line guidance range suggests year-over-year growth of approximately 6% on a reported basis and approximately 4% on a constant currency basis.
Logitech projects non-GAAP operating profit in the range of $155-$165 million during the fourth quarter of fiscal 2026.
Logitech projects non-GAAP operating profit in the range of $900-$910 million for fiscal 2026.
LOGI’s Zacks Rank & Stocks to Consider
Currently, Logitech carries a Zacks Rank #3 (Hold).
Amphenol APH, Micron Technology MU and Lam Research LRCX are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Micron Technology and Lam Research sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amphenol’s 2025 earnings has been revised upward by 2 cents to $3.31 per share over the past 30 days and suggests a year-over-year increase of 75.1%. Amphenol shares have jumped 58.4% in the past six months.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved downwards by 7 cents to $33.01 per share in the past seven days, calling for a year-over-year surge of 298.2%. Micron Technology shares have soared 267.4% in the past six months.
The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings has been revised upward by 2 cents to $4.85 per share over the past seven days, suggesting a year-over-year increase of 17.2%. Lam Research shares have surged 141.9% in the past six months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Logitech's Q3 Earnings Surpass Estimates, Revenues Rise Y/Y

Texas Instruments TXN reported fourth-quarter 2025 earnings per share of $1.27, which missed the Zacks Consensus Estimate by 2.3% and came above the midpoint of management’s guidance of $1.13 to $1.39. The bottom line decreased 2% year over year.
TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average surprise of 6.5%.
Texas Instruments reported revenues of $4.42 billion, which missed the Zacks Consensus Estimate by 0.3%. The figure came above the midpoint of management’s guidance of $4.22-$4.58 billion. The top line rose 10% year over year.
Texas Instruments Incorporated Price, Consensus and EPS Surprise
Texas Instruments’ Q4 Top-Line Details
Segment-wise, Texas Instruments operates under three business divisions: Analog, Embedded Processing and Other.
Analog: Revenues of $3.62 billion were generated from the segment (81.7% of total revenues), up 14% from the year-ago quarter’s level. The figure came above our model estimate of $3.53 billion.
Embedded Processing: Revenues amounted to $662 million (15% of total revenues), up 8% year over year. The figure surpassed our model estimate of $618.7 million.
Other: Revenues totalled $146 million (3.3% of total revenues), down 34% from the prior-year quarter’s level. The figure missed our model estimate of $276.1 million.
Texas Instruments’ Operating Details
Texas Instruments’ gross profit increased 7% year over year to $2.47 billion. Gross margin of 55.9% contracted 190 bps year over year.
Selling, general and administrative (SG&A) expenses remained flat year over year at $446 million. As a percentage of revenues, SG&A expenses contracted 100 basis points (bps) year over year to 10.1%.
Research and development expenses grew 6.1% to $521 million. As a percentage of revenues, it decreased 160 bps to 11.8%.
Operating profit rose 7% year over year to $1.47 billion. The operating margin was 33.3%, which contracted 110 bps from the prior-year quarter’s number.
TXN’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, the cash and short-term investment balance was $4.88 billion, down from $5.19 billion as of Sept. 30, 2025.
At the end of the reported quarter, TXN’s long-term debt was $13.548 billion, up marginally from $13.546 billion in the previous quarter.
Texas Instruments generated an operating cash flow of approximately $2.25 billion in the fourth quarter. During the fourth quarter, it repurchased stocks worth $403 million and paid $1.29 billion in dividends.
In 2025, the company generated an operating cash flow of $7.15 billion and returned approximately $6.48 billion through share repurchases and dividend payments.
TXN Initiates Guidance for Q1 2026
For the first quarter of 2026, TXN expects revenues between $4.32 billion and $4.68 billion. The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $4.39 billion, indicating an increase of 7.9% from the year-ago quarter.
The company expects earnings per share between $1.22 and $1.48. The consensus mark for the same is pegged at $1.30 per share, indicating an increase of 1.6% from the year-ago quarter.
The company expects the effective tax rate to be in the band of 13-14%.
Zacks Rank and Other Stocks to Consider
Currently, TXN carries a Zacks Rank #2 (Buy).
Amphenol APH, Micron Technology MU and Lam Research LRCX are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Amphenol, Micron Technology and Lam Research sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amphenol’s 2025 earnings has been revised upward by 2 cents to $3.31 per share over the past 30 days and suggests a year-over-year increase of 75.1%. Amphenol shares have jumped 58.4% in the past six months.
The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved downwards by 7 cents to $33.01 per share in the past seven days, calling for a year-over-year surge of 298.2%. Micron Technology shares have skyrocketed 267.4% in the past six months.
The Zacks Consensus Estimate for Lam Research’s fiscal 2026 earnings has been revised upward by 2 cents to $4.85 per share over the past seven days, suggesting a year-over-year increase of 17.2%. Lam Research shares have surged 141.9% in the past six months.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.